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SUSTAINABILITY POSITION PAPER

SUSTAINABILITY POSITION PAPER 2014 web

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Page 1: SUSTAINABILITY POSITION PAPER 2014 web

SUSTAINABILITY POSITION PAPER

Page 2: SUSTAINABILITY POSITION PAPER 2014 web

Arpa’s management and employees put Li-

priorities. LTO includes:

local community

requirements

issues are properly addressed.

--

INTRODUCTIONArpa is a leading manufacturer of HPL panels for interior applications in kitchen and furniture around the globe.

INTRODUCTION

Arpa is a leading manufacturer of HPL panels for interior applications.

Arpa's management and employees have put

License to Operate (LTO) first in their Strategic

priorities. LTO includes:

• The health and safety of employees and the

local community

• Product compliance to meet all regulatory

requirements

• Transparent reporting and appropriate

behaviour by employees

• Sustainability and the preservation of the

environment

Whilst LTO is ultimately the responsibility of

Arpa’s top management, these issues can

only be properly addressed if all employees

are truly committed to it.

Sustainability became part of Arpa's LTO

strategy in 2010, following an initial survey of

the environmental impact of the production

site.

This paper covers 5 chapters:

1. Philosophy and Beliefs

2. Sustainability Policy

3. Measuring environmental impact

4. Progress

5. Improvement initiatives and targets

As an anchor and guideline to our efforts on

sustainability, we look to the ISO 26000

standard, Guidance on Social Responsibility.

Page 3: SUSTAINABILITY POSITION PAPER 2014 web

1) For more information about the ISO 26000 norm, see Appendix 1

and http://www.iso.org/iso/home/standards/iso26000.htm

The ISO 26000 standard features seven 'core

subjects', ranging from "Human Rights" to

"Community Involvement and Development".

We have selected "The Environment" as the

basis for our sustainability efforts, covering:

• Prevention of pollution

• Sustainable resource use

• Climate change mitigation and

adaptation

• Protection and restoration of the natural

environment

This paper describes the environmental

performance profile of the company so far.

The improvement process started in 2010

and, year after year, the company has set

new, ambitious targets, especially in waste

and energy reduction. The reason for focusing

on these two main priorities is the importance

of raw materials in Arpa's environmental

impact. As Arpa progresses in its efforts, or as

new information becomes available, Arpa will

restate its position accordingly and issue new

versions of this position paper. In doing so,

Arpa will clearly outline its progress, as well as

any changes in its priorities.

Page 4: SUSTAINABILITY POSITION PAPER 2014 web

Common sense

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Objective and fact based-

-

-

-

sustainability policy.

-

-

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Integral part of business planning and review cycle

-

all sustainability issues into its rolling business

PHILOSOPHY AND BELIEFSTransparent and standardized methodology to promote lasting improvement.

PHILOSOPHY AND BELIEFS

Common sense

As in many of its business decisions, Arpa will

use common sense in addressing the topic of

sustainable development. This implies

avoiding philosophies and dogmas and

choosing to base its sustainability strategy on

measuring its environmental impact.

Objective and fact-based

Arpa believes in objective and fact-based

analysis and has performed a Life Cycle

Analysis (LCA) to map its environmental

footprint along the entire value chain.

Although many different methods exist, Arpa

believes that the Life Cycle Analysis, as

described in ISO 14040 and ISO 14044, is

currently the most objective and fact-based

method available to measure its environmental

footprint. This is confirmed by an increasing

number of certifications relying on this

methodology. Although Arpa is looking to

achieve certification, this is not the backbone

of its sustainability policy.

For Arpa, the Life Cycle Analysis is the basis

for all of its improvement initiatives. However,

Arpa will continue to monitor alternative

methodologies and adopt them if they are

understandable, transparent and

standardized, and promote lasting

improvements.

Integral part of the business planning and

review cycle

To achieve change, Arpa will set realistic, but

challenging, priorities based on its Life Cycle

Analysis (LCA) as part of a continuous

Improvement process.

In line with other License to Operate topics,

Arpa integrates all sustainability issues into its

ongoing business planning and review cycle.

Transparent and standardized methodology to promote lasting improvement.

Page 5: SUSTAINABILITY POSITION PAPER 2014 web

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-

-

-

-

-

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MEASURING ENVIRONMENTAL IMPACTThe most recent Life Cycle Analysis was per-formed with help of PE International, a leading consultant in this area, based on full year 2010 data.

Declarations (EPDs). Such EPDs are the

leading documents when publishing sustaina-

bility results. The LCA parameters include

indicators with a negative impact on the

environment (air, water and soil), emissions of

greenhouse gases that contribute to climate

change, and energy resources depletion

(non-renewable and renewable).

These indicators are listed and further

explained in Appendix 2. This analysis has

made it clear to us that our environmental

footprint is mainly determined by the effect of

our raw materials. Up to 70% of the energy

consumption for our products comes from

upstream raw materials production processes

and transportation to our production site. The

same holds true for emissions, leading to the

occurrence of acid rain (AP) and the extinction

of life in water (EP).

MEASURING ENVIROMENTAL IMPACT

The first LCA in Arpa was performed in

2010 and then updated in 2012, thus

improving the quality of the data collection.

These LCA analyses were performed from

a 'cradle-to-gate' perspective that basically

looks at the total impact of the manufacturing

footprint, including the extraction and

processing of raw materials as well as

transport to the manufacturing site, for all

products produced by Arpa. The results are

shown on the next page.

The units are based on the production of 1

kg of Arpa HPL in 2012.The analysis

excludes the effects during the use and

end-of-life phases which have to be analysed

on a product-specific level.

Six key environmental indicators, agreed as

most relevant from the LCA analysis, are

commonly reported in Environmental Product

Life cycle assessment.

Page 6: SUSTAINABILITY POSITION PAPER 2014 web

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Per kg HPL Environmental impact dimensions

Units Total 2012 LCA

Arpa contribution Raw material contribution

Emission to air, water and

soil

Acidification (AP) Kg SO2- Equiv 1,78 E-02 12% 88% Eutrophication (EP) Kg Phosphate-

Equiv 1,9 E-03 13% 87%

Photochemical Ozone creation (POCP)

Kg R11-Equiv 1,44 E-03 35% 65%

Primary energy consumption and carbon

footprint

Total primary energy MJ 94 21% 79% Carbon footprint (GWP) Kg CO2-Equiv 4,4 25% 75% Renewable energy share MJ 78 6% 94%

As mentioned on the previous version of the Sustainability Position paper, more accurate

information on the environmental profile of the Kraft paper became available. While performing

the 2010 LCA, Arpa came to the conclusion that it needed more detailed information on some

topics, in particular the upstream contribution from raw materials production and transport. For

this reason, Arpa started a dialogue with its Kraft paper suppliers to get more detailed

information. An analysis of the data showed that the Kraft core paper manufacturing opera-

tions have a significantly larger, and thus worse, impact on Arpa's environmental profile,

especially in terms of primary energy consumption and carbon footprint. This is clearly visible

in the table above showing the comparison between the 2010 LCA and the 2012 LCA.

Total 2010 LCA

1,2 E - 021,9 E- 03

1,4 E- 03

89 2,8 29

Page 7: SUSTAINABILITY POSITION PAPER 2014 web

PROGRESS AT ARPA SITE

• Upstream contributions from raw materials

production

• Primary energy use for Arpa's own

production processes

Arpa has established and monitors the waste

and energy balances of its manufacturing

process in order to identify material usage and

waste reduction opportunities.

Despite the fact that the overall environmental

performance has worsened due to the

contribution by the paper suppliers, energy

and waste consumption at the Arpa site have

decreased significantly.

In particular, Arpa has decreased its paper

waste by optimising the number of changeo-

vers, implementing an internal paper recycling

system, and modifying the impregnation line

stacking operation. It has decreased its

energy consumption by adding a new boiler

regulation system, increasing efficiency and

implementing daily checklists.

The chart below shows the relative energy

and waste trends:

The 2012 LCA confirms the two clear focal points for Arpa's sustainability efforts:

Page 8: SUSTAINABILITY POSITION PAPER 2014 web

2009 2010 2011 2012Rel. electricity cons. 100,0 100,4 94,5 95,4Rel. gas cons. 100,0 104,0 91,4 82,7Rel. paper waste 100,0 81,9 76,7

70

75

80

85

90

95

100

105

110

Rel

ativ

e in

dexe

d en

ergy

co

nsum

ptio

n an

d pa

per

was

te g

ener

atio

n (k

Wh/

ton,

m

3 /ton

or k

g/to

n)

Page 9: SUSTAINABILITY POSITION PAPER 2014 web

As mentioned before, the 2011 LCA led to two clear focal points for Arpa’s sustainability efforts:

PROGRESS

--

-

-

-duction and transport

processes

--

-

FSC CERTIFICATION

In 2013, Arpa obtained FSC Chain of Custody

certification. This FSC certification confirms

that paper-based products come from

responsibly managed forests that foster

environmental, social and economic benefits.

FSC Chain of Custody certification applies to

manufacturers, processors and traders of

FSC certified products along the production

chain.

Chain of Custody certification guarantees that

FSC-certified wood products are kept

separate from uncertified products or only

mixed with uncertified products in an appro-

ved way at each stage in the processing and

transformation chain.

Page 10: SUSTAINABILITY POSITION PAPER 2014 web

IMPROVEMENT INITIATIVES 2013-2015

Arpa will continue to focus on reducing the

impact of its raw materials and energy

consumption. In particular:

Upstream contributions from raw materials

production

• Reduction of the relative amount of waste

(in kg/ton of Arpa HPL) by 5% by the end

of 2015 compared to the end of 2011.

Primary energy consumption for Arpa's own

production processes

• Reduction of the relative amount of energy

(in GJ/ton of Arpa HPL) by 8% by the end

of 2015 compared to the end of 2011.

The main projects initiated in order to achieve

the above results are:

• Replacing all lamps by LED lights

• Substituting some electrical motors which

have a major impact on energy

consumption by new, more energy

efficient equipment.

• A new ventilated facade for the main office

building.

An updated energy diagnosis of the plant is

performed every year in order to identify new

opportunities and confirm improvements.

Page 11: SUSTAINABILITY POSITION PAPER 2014 web

Guidance on Social Responsibility from ISO 26000 including the priority areas.

APPENDIX 1

Core subjects and issues Addressed in sub-clause

APPENDIX 1

Guidance on Social Responsibility from ISO 26000 including the priority areas.

Core subjects and issuesCore subject: Organizational governance Decision-making processes and structures Core subject: Human rights Issue 1: Due diligence Issue 2: Human rights risk situationsIssue 3: Avoidance of complicity Issue 4: Resolving grievances Issue 5: Discrimination and vulnerable groups Issue 6: Civil and political rights Issue 7: Economic, social and cultural rights Issue 8: Fundamental rights at work Core subject: Labour PracticesIssue 1: Employment and employment relationships Issue 2: Conditions of work and social protection Issue 3: Social dialogue Issue 5: Human development and training in the workplace Core subject: The environmentIssue 1: Prevention of pollution Issue 2: Sustainable resource use Issue 3: Climate change mitigation and adaptationIssue 4: Protection and restoration of the natural environment

ADDRESSED IN SUB-CAUSE 6.2 6.2.3 6.3 6.3.3 6.3.4

6.3.56.3.66.3.76.3.86.3.9

6.3.106.4

6.4.36.4.46.4.56.4.7

6.56.5.36.5.46.5.56.5.6

Page 12: SUSTAINABILITY POSITION PAPER 2014 web

Core subject: Fair operating practicesIssue 1: Anti–corruption Issue 2: Responsible political involvement Issue 3: Fair competition Issue 4: Promoting social responsibility in the sphere of influence Issue 5: Respect for property rights Core subject: Consumer issues Issue 1: Fair marketing, information and contractual practices 6.Issue 2: Protecting consumers’ health and safety Issue 3: Sustainable consumption Issue 4: Consumer service, support, and dispute resolutionIssue 5: Consumer data protection and privacy Issue 6: Access to essential services Issue 7: Education and awareness Core subject: Community involvement and developmentIssue 1: Community involvement Issue 2: Education and culture Issue 3: Employment creation and skills development Issue 4: Technology development Issue 5: Wealth and income creation Issue 6: Health Issue 7: Social investment

6.66.6.36.6.46.6.56.6.66.6.7

6.76.7.36.7.46.7.56.7.66.7.76.7.86.7.9

6.86.8.36.8.46.8.56.8.66.8.76.8.86.8.9

Page 13: SUSTAINABILITY POSITION PAPER 2014 web

Emissions parameters

-

-

-

Climate change parameters-

emissions.

Resource depletion parameters

LCA environmental indicators.APPENDIX 2

APPENDIX 2

Environmental indicators for LCA

negative impact on the local environment

resulting in the build-up of summer smog.

Climate change parameters

Global Warming Potential (GWP) Global

Warming Potential (GWP) is the emission of

greenhouse gases leading to climate change.

This is also known as the carbon footprint and

is measured in the equivalent emission of

carbon dioxide. Burning fossil fuels is the

major source of GWP, but carbon capture in

raw materials such as wood can offset these

emissions.

Resource depletion parameters

Primary energy usage is the energy required

to produce one unit of product. Some of this

energy can be provided in the form of

renewable energy such as solar and wind

energy.

Emissions parameters

Acidification Potential (AP) gauging the effect

of releasing acids into the environment,

ultimately leading to phenomena such as acid

rain.

Eutrophication Potential (EP) measuring

the effect of releasing excessive amounts of

nutrients into surface water which reduces the

oxygen content in the water and kills aquatic

life.

Ozone Depletion Potential (ODP) measu-

ring the effects of gas emissions, ultimately

leading to gaps in the earth's protective ozone

layer with all the associated detrimental

effects on life. Well-known but fortunately

banned contributors to ozone depletion are

CFC gases.

Photochemical Ozone Creation Potential

(POCP) gauging the emissions of gases with

Page 14: SUSTAINABILITY POSITION PAPER 2014 web

DISCLAIMER - The disclaimer that follows is a summary of the applicable full disclaimer (which can be found on arpaindustriale.com). The information provided by Arpa Industriale S.p.A. (“Arpa”) in this document is solely indicative. Arpa is unable to warrant the accuracy and completeness of this information. No rights can be derived from the information provided; the use of the information is at the other party’s risk and responsibility. This document does not guarantee any properties of Arpa’s products. Arpa does not warrant that the information in this document is suitable for the purpose for which it is consulted by the other party. The document does not contain any design, structural calculation, estimate or other warranty or representa-tion that customers and third parties may rely on. Colours used in Arpa’s communications (including but not limited to printed matter) and in samples of Arpa’s products may differ from the colours of the Arpa’s products to be supplied. Arpa’s products and samples are produced within the specified colour tolerances and the colours (of production batches) may differ, even if the same colour is used. The viewing angle also influences the colour perception. Customers and

third parties must have a professional adviser inform them about (the suitability of) the Arpa’s products for all desired applications and about applicable laws and regulations. Arpa reserves the right to change (the specifications for) its products without prior notice. To the maxmum extent permitted under the applicable law, Arpa is not liable (neither contractual nor non-contractual) for any damage arising from or related to the use of this document, except if and to the extent that such damage is the result of wilful misconduct or gross negligence on the part of Arpa and/or its management.All oral and written statements, offers, quotations, sales, supplies, deliveries and/or agreements and all related activities of Arpa are governed by the General Terms and Conditions of Arpa Industriale S.p.A. All oral and written statements, offers, quotations, sales, supplies, deliveries and/or agreements and all related work of Arpa USA, Inc. (“Arpa USA”) are governed by the Arpa USA General Terms and Conditions of Sale. All intellectual property rights and other rights regarding the content of this document (including logos, text and photographs) are owned by Arpa and/or its licensors.

Page 15: SUSTAINABILITY POSITION PAPER 2014 web

Arpa Industriale S.p.A.Via Piumati, 9112042 BRA (CN) - Italytel. +39 0172 436111fax +39 0172 [email protected]@arpaindustriale.com

Filiale di LissoneVia B. Cellini, 2920035 LISSONE (MB) - Italytel. +39 039 795525fax +39 039 [email protected]

Filiale di PadovaVia C. Battisti 1335010 LIMENA (PD) - Italytel. +39 049 8848105fax +39 049 [email protected]

Filiale di PesaroVia dell’Industria, 8/10Loc. Chiusa di Ginestreto61100 PESARO (PU) - Italytel. +39 0721 482295 / 482012fax +39 0721 [email protected]

Arpa France S.A.R.L.50, Impasse de la Balme69805 SAINT PRIEST - CEDEX - Francetel. +33 (0)4 78 90 00 23fax +33 (0)4 78 90 64 66 [email protected]

ARPA [email protected]

Arpa Industriale Iberica S.L.U.Calle Ribera, 508003 BARCELONA - Spaintel. +34 93 268 70 61fax +34 93 116 33 [email protected]

Arpa Nederland B.V.Nieuw Mathenesserstraat 693113 AE SCHIEDAM - The Netherlandstel. +31 (0)10 2857315fax +31 (0)10 [email protected]

Arpa UK LtdBlock 3, Parkhall Business Village,Park Hall Road, LongtonSTOKE-ON-TRENT ST3 5XA - Great Britaintel. +44 (0)1782 332 368fax +44 (0)1782 [email protected]

Arpa USA62, Greene StreetNEW YORK, NY 10012 - USATel. +1 212 334 6888Fax +1 866 249 [email protected]

arpaindustriale.com

Brookhouse RoadParkhouse Industrial Estate WestNewcastle-under-LymeStaffordshire ST5 7RUUnited KingdomT + 44 (0)1782 561914F +44 (0)1782 561846 [email protected]

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